FEDERAL HOME LOAN BANK OF CHICAGO by HC120915035455

VIEWS: 0 PAGES: 5

									                         FEDERAL HOME LOAN BANK OF CHICAGO
                       AFFORDABLE HOUSING PROGRAM AGREEMENT
                       FOR THE 2011 DOWNPAYMENT PLUS® PROGRAM


The FEDERAL HOME LOAN BANK OF CHICAGO (“Bank”), the Member (as listed on the signature
page hereto) (“Member”) and the ILLINOIS LEAGUE OF FINANCIAL INSTITUTIONS (“Program
Administrator”), as of the date set forth on the signature page hereto, enter into this Affordable Housing
Program Agreement for the 2011 Downpayment Plus Program (“Agreement”), which sets forth the
respective duties and obligations of the Bank, the Member and the Program Administrator with regard to
funding under the Bank’s Downpayment Plus Program.

WHEREAS, the Downpayment Plus Program consists of the standard Downpayment Plus® Program and
the Downpayment Plus Advantage® Program;

WHEREAS, the Bank has committed funds to finance the Downpayment Plus Program (the “Funds”);

WHEREAS, the Member desires to participate in the Downpayment Plus Program and obtain a portion of
the Funds (the “Member Funds”); and

WHEREAS, the Downpayment Plus Program, the Funds and the Member Funds, as applicable, shall be
administered under this Agreement.

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises and agreements
herein, and other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

Section 1. The Member agrees that the Program Administrator is acting as agent for the Member for
purposes of the administration of the Member Funds pursuant to the Downpayment Plus Program. The
Member further agrees to release and hold harmless the Program Administrator and the Bank, and their
respective directors, officers, employees and agents from and against any liability, claims, demands,
obligations, losses, costs or contentions that Member now has or may have against the Program
Administrator and/or the Bank and their respective directors, officers, employees and agents, including
without limitation, all attorneys’ fees, whether or not suit is instituted, and other costs and expenses
arising out of or in any way connected with this Agreement or the Downpayment Plus Program.

Section 2. The Member Funds granted to the Member under the standard Downpayment Plus Program
shall be in an amount not to exceed $180,000, unless the Bank in its sole discretion authorizes the grant of
additional Member Funds to the Member in accordance with the Bank’s Affordable Housing Program
(“AHP”) Implementation Plan. The amount of Funds granted to the Member under the Downpayment
Plus Advantage Program shall not be subject to the $180,000 restriction.

Section 3. All Funds are available on a first come, first served basis only. The Bank makes no
representations, warranties or promises that Funds will be available for any of the Member's particular
loans. The Member is required to reserve Funds for each of its particular loans prior to making a
commitment to any borrower to fund their loan with Member Funds. Funds are only reserved for a
particular loan, and are not transferable from one of the Member's loans to another. In all cases at any
time, Member Funds for any of a Member’s particular loans are subject to the final approval of the Bank.


(1/25/2011)
Section 4. All parties agree to be bound by (a) the AHP regulations of the Federal Housing Finance
Agency (“FHFA”) (12 C.F.R. Part 1291) as may be in effect from time to time, or the regulations in effect
from time to time of any successor in interest to the FHFA (the “Regulations”), as they apply to this
Agreement or the Downpayment Plus Program, and (b) the AHP Implementation Plan, guidelines and
requirements of the Bank or any successor in interest to the Bank as may be in effect from time to time
(collectively the “2011 Plan”). To the extent the Regulations are inconsistent with any term or provision
of this Agreement, the 2011 Plan or the Downpayment Plus Program, the Regulations shall govern the
conduct and obligations of the parties. All references to statutes and regulations shall include any
amendments of the same and any successor statutes and regulations.

Section 5. The Member shall pass through to, or on behalf of, a borrower, the full amount of the Member
Funds which were approved for such borrower.

Section 6. The Member and the Program Administrator agree to use the Funds and the Member Funds, as
applicable, in accordance with the Regulations, the Bank’s policies and procedures and the Bank’s 2011
Plan.

Section 7. The Funds must be drawn down and used by March 31, 2012. If Funds are not reserved by the
Program Administrator and drawn down by the Member within this timeframe and an extension has not
been granted by the Bank pursuant to the 2011 Plan or otherwise, the Bank shall cancel the Member’s
application for Funds and make the Funds available for other applicants for homeownership set-aside
funds or other AHP eligible projects.

Section 8. The Program Administrator may cancel the Member’s reservations for loans that have not
been closed within ninety (90) days, unless extended by the Program Administrator.

Section 9. The Member shall repay to the Bank that portion of the Member Funds, including interest as
determined in the Bank’s sole discretion, if appropriate, that as a result of the Member’s actions or
omissions, are not used in compliance with the requirements of the Regulations, the 2011 Plan or this
Agreement (whenever such noncompliance is discovered), unless such noncompliance is cured by the
Member within a reasonable period of time as determined by the Bank, or the circumstances of such
noncompliance are eliminated pursuant to the Regulations, the 2011 Plan or this Agreement, as
applicable, as determined by the Bank. The Program Administrator shall not be liable to the Bank for the
return of amounts that cannot be recovered from the Member; provided that the Program Administrator
shall use its best efforts to obtain such amounts from the Member.

Section 10. The Program Administrator shall be liable to the Bank for that portion of the Funds, that, as a
result of the Program Administrator’s actions or omissions, are not used in compliance with the
requirements of the Regulations, the 2011 Plan or this Agreement (whenever such noncompliance is
discovered), unless such noncompliance is cured by the Program Administrator within a reasonable period
of time as determined by the Bank or the circumstances of such noncompliance are eliminated pursuant to
the Regulations, the 2011 Plan or this Agreement, as applicable, as determined by the Bank.

Section 11. Member Funds shall be disbursed only to institutions that are members of the Bank at the
time of such disbursement or “draw-down.” The Bank may disburse Member Funds to another member
of the Bank to which the Member has transferred its obligations under the Downpayment Plus Program,

(1/25/2011)                                         2
or the Bank may disburse Member Funds through another Federal Home Loan Bank, to a member of such
other Federal Home Loan Bank that has assumed the Member’s applicable obligations.

Section 12. The Member shall ensure that an owner-occupied unit financed by the proceeds of Member
Funds is subject to a deed restriction or other legally enforceable retention agreement or mechanism
(“Retention Vehicle”) requiring that (a) the Bank or its designee is to be given notice of any sale or
refinancing of the unit occurring prior to the end of the retention period; (b) in the case of a sale or
refinancing prior to the end of the retention period, an amount equal to a pro-rata share of the direct
subsidy, reduced for every month the seller owned the unit, shall be repaid to the Bank from any net gain
(as defined by the Bank at the time of sale or refinancing) realized upon the sale or refinancing, unless (i)
the unit is sold to a very low-, or low- or moderate-income household; or (ii) following a refinancing, the
unit continues to be subject to a Retention Vehicle; (c) such repayment of the subsidy shall be made to the
Bank; and (d) the obligation to repay the subsidy to the Bank shall terminate after any foreclosure.

Section 13. The Program Administrator and the Member agree to promptly report to the Bank any
changes in the financial structure of any particular loan or Downpayment Plus Program transaction, or any
other eligibility requirement, including but not limited to, any new sources of funds, failure to receive
other Downpayment Plus Program funds, or any other changes in a particular loan’s or Downpayment
Plus Program transaction’s scope or terms. The Bank retains the right to reevaluate the need for any
Funds in light of any such changes and may make such modifications thereto, including the amount of the
Funds, as it deems appropriate in its sole discretion.

Section 14. The Bank may, in its sole discretion, initiate a civil action in the United States District Court,
Northern District of Illinois against the Member to recover the Funds disbursed and any costs and
attorneys’ fees incurred by the Bank in connection with such action. The Member consents to jurisdiction
and venue in said court.

Section 15. The parties agree that this Agreement may be transmitted between them by facsimile
machine. The parties intend that faxed signatures constitute original signatures and that a faxed
Agreement containing the signatures (original or faxed) of all the parties is binding on the parties. This
Agreement may be executed in any number of counterparts, each of which, when so executed shall be
deemed an original, but all of which taken together shall be one and the same instrument.

Section 16. Notices, reports and communications under this Agreement shall be in writing and will be
deemed to be properly given when personally delivered to the party entitled to receive the notice or three
days after the same is sent by certified or registered U.S. mail, postage prepaid, or by overnight courier
properly addressed to the party entitled to receive such notice at the addresses below; provided that
recurring reports, certifications and ordinary communications shall be permitted to be transmitted
electronically via facsimile. Any party may at any time give notice in writing to the other parties of a
change of its address for the purpose of this Section 16.
The Member:                    Member notice information is on the signature page hereto.
The Program Administrator: Illinois League of Financial Institutions
                           133 S. 4th Street, Suite 206
                           Springfield, IL 62701
                           Phone: (217) 522-5575
                           Fax: (217) 789-9115
                           Attention: Jackie Billings
(1/25/2011)                                           3
The Bank:                     Federal Home Loan Bank of Chicago
                              200 E. Randolph Drive
                              Chicago, IL 60601
                              Phone: (312) 565-5824
                              Fax: (312) 565-6947
                              Attention: Community Investment

Section 17. This Agreement shall not be amended or terminated in whole or in part, and the performance
of any obligation hereunder may not be waived, except by an instrument in writing signed by the parties
hereto, or their respective successors or permitted assigns, or otherwise as provided herein. This
Agreement constitutes the entire agreement between the parties and supersedes any and all prior
agreements or understandings, verbal or written, between the parties with respect to the subject matter
hereof.

Section 18. Neither the Member nor the Program Administrator may assign this Agreement without the
consent of the Bank, and this Agreement shall bind any successors or permitted assigns of the parties
hereto. This Agreement shall be binding upon any successor in interest to the parties hereto.

Section 19. The Bank may from time to time request that the Member and/or the Program Administrator
allow the inspection of any of the books and records of the Member and/or the Program Administrator
pertaining to this Agreement or the Downpayment Plus Program, and the Member and/or the Program
Administrator shall allow such inspections and access to such books and records at reasonable times
during the normal business hours of the Member and/or the Program Administrator and upon reasonable
terms without disruption to the normal business operations of the Member and/or the Program
Administrator.

Section 20. The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity of any other provision, and all other provisions shall remain in full force and effect.

Section 21. Any forbearance by a party to this Agreement in exercising any right or remedy under this
Agreement or otherwise afforded by applicable laws shall not be a waiver of or preclude the exercise of
that or any other right or remedy.

Section 22. No Joint Venture. None of the Bank, the Program Administrator nor the Member are
partners or joint venturers with each other and nothing herein shall be construed to make them such
partners or joint venturers or impose any liability as such on any of them.

Section 23. This Agreement shall be governed by, construed under and interpreted in accordance with the
laws of the State of Illinois without regard to principles of conflicts of laws.


                                  [SIGNATURES FOLLOW]




(1/25/2011)                                          4
The undersigned parties accept the terms and conditions set forth herein by executing this Agreement in
the space set forth below. By executing this agreement, each party also represents, warrants and
covenants that (i) it has the full corporate power and authority and has received all corporate and
governmental authorizations, licenses and approvals which may be required to enter into and perform its
obligations in connection with this Agreement and the Downpayment Plus Program, (ii) at all times it
shall adhere to the terms and conditions set forth herein, (iii) its duties, rights and obligations provided for
in this Agreement or the Downpayment Plus Program shall not violate any applicable law, rule or
regulation, (iv) it is duly organized and authorized to enter into this Agreement and perform all of its
respective duties and obligations set forth in this Agreement and the Downpayment Plus Program, and (v)
this Agreement has been duly executed and delivered and when executed and delivered by it, will
constitute its legal, valid and binding obligation.

MEMBER:

[Full legal name]
By:
Printed Name:
Title:
Street Address:
City, State, Zip:
Phone:                                        Fax:
E-mail:
FHLBC Member Number:


PROGRAM ADMINISTRATOR:
ILLINOIS LEAGUE OF FINANCIAL INSTITUTIONS
By:

Printed Name:       Jay R. Stevenson
Title:     President


BANK:
FEDERAL HOME LOAN BANK OF CHICAGO
By:

Printed Name: Samuel J. Nicita
Title: Senior Vice President           Dated:


(1/25/2011)                                            5

								
To top